With a lot of geo-political uncertainty and nervousness in the market, prices of key products remain flat for the time being. Two major forces are working against each other currently – sluggish EU milk production and expected COVID driven demand-side weakness.
Fresh SMP (food) prices are still in the €2,050-2,150/t range with relatively good inventories and mixed messages emerging from ONIL-Algeria. Cream prices are significantly lower now and in the €3,700-3,900/t range, reflecting the closing of the foodservice sector. However, butter remains stable and in the €3,250-3,350/t range (frozen and lactic fresh respectively).